Absorptive Capacity and Efficiency: A Comparative Stochastic Frontier Approach Using Sectoral Data
AbstractIn this paper, we investigate differences in and determinants of technical efficiency across three groups of OECD, Asian and Latin American countries. As technical efficiency determines the capacity with which countries absorb technology produced abroad, these differences are important to understand differences in growth and productivity across countries, especially for developing countries which depend to a large extend on foreign technology. Using a stochastic frontier framework and data for 22 manufacturing sectors for 1996-2005, we find notable differences in technical efficiency between the three country groups we examine. We then investigate the effect of human capital and domestic R&D, proxied by the stock of patents, on technical efficiency. We find that while human capital has always a strongly positive effect on efficiency, an increase in the stock of patents has positive effects on efficiency in high-tech sectors, but negative effects in low-tech sectors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by IMT Institute for Advanced Studies Lucca in its series Working Papers with number 4/2012.
Length: 27 pages
Date of creation: Jun 2012
Date of revision: Jun 2012
absorptive capacity; efficiency; stochastic frontier analysis;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kneller, Richard & Andrew Stevens, Philip, 2003. "The specification of the aggregate production function in the presence of inefficiency," Economics Letters, Elsevier, vol. 81(2), pages 223-226, November.
- Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012.
"Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors,"
Journal of Productivity Analysis,
Springer, vol. 37(2), pages 125-140, April.
- Kumbhakar, Subal C. & Ortega-Argilés, Raquel & Potters, Lesley & Vivarelli, Marco & Voigt, Peter, 2009. "Corporate R&D and Firm Efficiency: Evidence from Europe’s Top R&D Investors," IZA Discussion Papers 4657, Institute for the Study of Labor (IZA).
- Subal C. Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2010. "Corporate R&D and firm efficiency: Evidence from Europe’s top R&D investors," JRC-IPTS Working Papers on Corporate R&D and Innovation 2010-11, Institute of Prospective Technological Studies, Joint Research Centre.
- Francesco Caselli & Daniel Wilson, 2002.
Federal Reserve Bank of San Francisco, issue Nov.
- Zilibotti, Fabrizio & Aghion, Philippe & Acemoglu, Daron, 2006.
"Distance to Frontier, Selection, and Economic Growth,"
4554122, Harvard University Department of Economics.
- Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, 03.
- Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2002. "Distance to Frontier, Selection, and Economic Growth," NBER Working Papers 9066, National Bureau of Economic Research, Inc.
- Acemoglu, Daron & Aghion, Philippe & Zilibotti, Fabrizio, 2002. "Distance to Frontier, Selection, and Economic Growth," CEPR Discussion Papers 3467, C.E.P.R. Discussion Papers.
- Richard Kneller, 2005. "Frontier Technology, Absorptive Capacity and Distance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 1-23, 02.
- Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 6.
- Miller, Stephen M. & Upadhyay, Mukti P., 2000. "The effects of openness, trade orientation, and human capital on total factor productivity," Journal of Development Economics, Elsevier, vol. 63(2), pages 399-423, December.
- Camilla Mastromarco, 2008. "Foreign Capital And Efficiency In Developing Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 60(4), pages 351-374, October.
- Francesca Lotti & Fabiano Schivardi, 2005. "Cross Country Differences in Patent Propensity: A Firm-Level Investigation," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 469-502, December.
- Bhaumik, Sumon Kumar & Kumbhakar, Subal C., 2010. "Is the post-reform growth of the Indian manufacturing sector efficiency driven? Empirical evidence from plant-level data," Journal of Asian Economics, Elsevier, vol. 21(2), pages 219-232, April.
- Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. " The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-87, November.
- Bronwyn H. Hall & Megan MacGarvie, 2006.
"The Private Value of Software Patents,"
NBER Working Papers
12195, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Samuel Kortum, 2000.
"Trade in Capital Goods,"
Boston University - Department of Economics - The Institute for Economic Development Working Papers Series
dp-109, Boston University - Department of Economics.
- Mario Cimoli & Jorge Katz, 2003. "Structural reforms, technological gaps and economic development: a Latin American perspective," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 387-411, April.
- Bassanini, Andrea & Nunziata, Luca & Venn, Danielle, 2008.
"Job Protection Legislation and Productivity Growth in OECD Countries,"
IZA Discussion Papers
3555, Institute for the Study of Labor (IZA).
- Andrea Bassanini & Luca Nunziata & Danielle Venn, 2009. "Job protection legislation and productivity growth in OECD countries," Economic Policy, CEPR & CES & MSH, vol. 24, pages 349-402, 04.
- Sangho Kim & Muthusamy Saravanakumar, 2012. "Economic Reform and Total Factor Productivity Growth in Indian Manufacturing Industries," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 152-166, 02.
- Hailin Liao & Xiaohui Liu & Mark Holmes & Tom Weyman-Jones, 2009. "The Impact Of Foreign R&D On Total Factor Productivity In The East Asian Manufacturing Industry," Manchester School, University of Manchester, vol. 77(2), pages 244-270, 03.
- Madsen, Jakob & Islam, Md Rabiul & Ang, James, 2010.
"Catching Up to the Technology Frontier: The Dichotomy between Innovation and Imitation,"
21701, University Library of Munich, Germany.
- Jakob B. Madsen & Md. Rabiul Islam & James B. Ang, 2010. "Catching up to the technology frontier: the dichotomy between innovation and imitation," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1389-1411, November.
- Jakob Madsen & Rabiul Islam & James Ang, 2009. "Catching up to the Technology Frontier: The Dichotomy Between Innovation and Imitation," CAMA Working Papers 2009-26, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Richard Kneller & Philip Andrew Stevens, 2006. "Frontier Technology and Absorptive Capacity: Evidence from OECD Manufacturing Industries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 1-21, 02.
- Rachel Griffith & Stephen Redding & John Van Reenen, 2003. "R&D and Absorptive Capacity: Theory and Empirical Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 99-118, 03.
- Yanling Wang, 2007. "Trade, Human Capital, and Technology Spillovers: an Industry-level Analysis," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 269-283, 05.
- Prescott, Edward C, 1998.
"Needed: A Theory of Total Factor Productivity,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 525-51, August.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
- Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. "Modeling the Sources of Output Growth in a Panel of Countries," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(3), pages 284-99, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Leonardo Mezzina).
If references are entirely missing, you can add them using this form.